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Opportunity Day Presentation | 1Q/15 The Stock Exchange of Thailand - - PowerPoint PPT Presentation

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Opportunity Day Presentation | 1Q/15 The Stock Exchange of Thailand May 25, 2015 DISCLAIMER This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated

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The Stock Exchange of Thailand May 25, 2015

Opportunity Day Presentation | 1Q/15

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SLIDE 2

This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. PTTGC has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and PTTGC does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

DISCLAIMER

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SLIDE 3

3

  • Overview
  • Strategic Actions Progress
  • Financial Performance
  • Market Outlook

AGENDA

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SLIDE 4

4

Crude Oil Price : Continue being cautious

Feedstock Management Expense Budgeting Hedging Morning War Room

Crude Oil price has rebounded, while extraordinarily high net long

Production Optimization and Inventory Management

Crack Spread and Stock Gain/Loss: Engaged 1/3 of target volume

ACTIVELY ONGOING MONITORING

Uncertain Economies

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SLIDE 5

5

  • Overview
  • Strategic Actions Progress
  • Financial Performance
  • Market Outlook

AGENDA

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SLIDE 6

6

MORE CLARITY ON STRATEGIES WITH PRUDENT ROADMAP

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SLIDE 7

REFINERY AROMATICS Ethylene Propylene Mixed C4 Benzene

mLLDPE

Pygas

SM PS ABS PO/Polyol PC Phenol/ Acetone PP SBR PU PMMA

880-1,320 KTA Potential Products Excess volume available for asset reconfiguration

* 425 KTA of which 230 KTA contract expiring in 2016

425 KTA* 180 KTA 70 KTA 70 KTA

3Q/15 4Q/15 2016 2017 2018 2019 2020 2021

Phenol II TOCGC Improvement PO/Polyol US Petrochemical Complex 2015

Short Term Mid Term Long Term

2022

Asset Reconfiguration

PTTGC Project Timeline

DOWNSTREAM OPPORTUNITIES

Upstream Product Available

Indonesia Petrochemical Complex Aromatics II Debott. HDI Monomer France mLLDPE HDI Derivative Thailand

OLEFINS

Reformate 970 KTA

Naphtha 7

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SLIDE 8

CORE UPLIFTS

2015 COMPLETING PROJECTS

SYNERGY PROJECT PROGRESS Off Gas Upgrading at Olefins

Delay to 2Q/15

99%

DEBOTTLENECKING & EXPANSION CAPACITY/ CAPEX PROGRESS Phenol 2 Project Target COD: 4Q/15

Phenol +250 KTA Acetone +155 KTA

97% CAPEX 345 M$

TOCGC Plant Improvement Project Target COD: 3Q/15

EOE +90 KTA

85% CAPEX 94.2 M$

Aromatics 2 Debottlenecking Project Target COD: 4Q/15

PX +115 KTA BZ +35 KTA OX +20 KTA

76% CAPEX 128.8 M$

* *

19 45 68 83 86 86

156 129 86 74 14 13 35 38 149 149 149 149 21

0.3 75 108 108 108 231 211 378 414 357 356

2013A 2014A 2015 2016 2017 2018

Operational Excellence Marketing Excellence Synergy Excellence Additional Synergy Debottleneck Total

Core Uplift Programs 2015 Target

(MUSD)

1Q/15 Actual

(MUSD)

FY2015 Estimate

(MUSD)

Synergy Excellence 149 11 35 Marketing Excellence 86 26 112 Operational Excellence 68 18 76 Total 303 55 223 8

*Updated as of March 2015

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SLIDE 9

World Scale Ethane Cracker

  • Utilize ethane from shale gas as feedstock
  • Capacity : 1 MTA Ethylene
  • Derivatives
  • HDPE : 700 KTA
  • MEG : 500 KTA
  • EO : 100 KTA
  • Location : Dilles Bottom, Ohio
  • Capex: Approx. US$ 5.7 Billion

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Petrochemical Complex

1-STEP ADJACENCIES: US Petrochemical Complex

Timeline

  • Investment cost justify investment return
  • Enough ethane capacity with capped price
  • Partner can distribute products in N. America

Key Criteria for FID

FEED Selection Dual-FEED Contractor Selection

FID 3Q/16 COD 4Q/20 BOD approved FEED Study Mar, 2015

CHECK POINTS

Construction

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SLIDE 10

Site Location: Ohio’s Key Advantages

1-STEP ADJACENCIES: US Petrochemical Complex

Close to feedstock supply

  • Site location is in the center of ethane

network with nearby fractionation units

  • Allowing the project to utilize existing

pipelines and provide flexibility for ethane delivery

  • Pipelines in this region are mostly newly

built with less than 2 years of use. Availability and Quality of Workforce

  • 90,000 local skilled workers in Ohio
  • JobsOhio with the construction trades and

educational system will deliver the required workforce. : organization promoting job creation and economic development of Ohio

  • JobsOhio offers an aggressive incentive package

for the Project i.e. state job creation tax credits, workforce training grants, infrastructure improvement grants, and local tax credits Accessible by railway/ highway/ waterway Readiness of infrastructure and utility Close to demand: (% of total US & Canada)

  • HDPE: 55% (4,500 KTA)
  • MEG: 65% (1,400 KTA)

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SLIDE 11

1-STEP ADJACENCIES: US Petrochemical Complex

Feedstock

  • Discussed with 9 potential upstream and midstream

suppliers with volume of 2.3-3.4 MTA of ethane which exceeds required volume of 1.25 MTA

  • Expected ethane supply contract tenor of 10-20

years.

  • Aim to cap ethane price with ceiling

Partner

Partner Selection Criteria

  • Trader / Marketing Expertize
  • Product Offtaker
  • Local connection & Practice

PTTGC is working with 6 selected potential partners

Funding

PTTGC is talking to potential lenders in Thailand and study funding scheme in the US in parallel

Technology

Cracker : Stone & Webster

  • Stone & Webster has the highest number of

projects and capacity share for the new project in US. HDPE : INEOS Group Limited (INEOS)

  • INEOS technology can produce products that

fit to US market and has market share in N.America. EOEG : Scientific Design (SD)

  • PTTGC has long experience in SD technology

in Thailand. As a result of 73 customer visits in 2014, all customers are willing to buy from us.

  • PE visits covered > 30% of US demand

(42 visits)

  • EOEG visits covered > 80% of US demand

(31 visits) Product suppliers in NE America

Marketing

HDPE MEG PTTGC, Shell, Braskem Combined Capacity 2,450 KTA (60% of NE demand) PTTGC

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1-STEP ADJACENCIES:

Petrochemical Complex in Indonesia

Refinery Upgrading Project Petrochemical Complex Project

Potential Partner

Feedstock from Balongan Refinery Updates PERTAMINA and partner is determining size and configuration of Refinery upgrade/expansion

  • Availability of petrochemical feedstock from

refinery expansion

  • Configuration and product yield of the expansion
  • Domestic demand of refined product

HDPE LDPE EO/EG PP BD

MTBE

300 KTA 400 KTA 460 KTA 544 KTA 125 KTA 116 KTA

Preliminary Configuration

Pygas

373 KTA

Naphtha based cracker 1.5 MTA Existing Capacity Expanding Capacity

Feedstock Required

Naphtha : 2.25 MTA LPG : 0.6 MTA Refinery Capacity 125 KBD Balongan Refinery Expansion + Petrochemical Complex

  • Consider collaboration to integrate Balongan Refinery with

petrochemical complex

  • PERTAMINA and a partner is looking to upgrade/expand its

Balongan refinery 12 2015 2016 PID by end

  • f 2015

2022 COD 2017 FID by 2Q/17

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SLIDE 13

PO / POLYOL Project

  • Location : Rayong, Thailand
  • Capacities
  • PO : 200 KTA
  • Polyols & System house : 100-150 KTA
  • CAPEX ~ 1 billion USD
  • Target COD : 4Q/19

Update:

  • Finalizing HOA agreement with partner
  • Feasibility study

2015 2016

Set up JV company

2019

End 2016 Approve for Construction COD 4Q/19

PO/Polyol

TDI HDI

PO

(Propylene Oxide)

System House Formulation

Polyols

(Polyether Polyols)

1-STEP ADJACENCIES PU Chain: PO/Polyols

EO

(Ethylene Oxide)

TDI Major Applications HDI Major Applications 13

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SLIDE 14

1-STEP ADJACENCIES PU Chain: Vencorex

VENCOREX Thailand HDI derivatives plant in Thailand

  • Capacity: 12 KTA
  • CAPEX : 40 M.Euro
  • Target COD : 4Q/15
  • Construction Status : 71.6%

Marketing

  • Existing customers of Vencorex France in Asia approx. 8% of Asia Pacific Market
  • Seek new customers through premarketing by increasing direct sales especially with key accounts
  • HDI in Asia growth at 6% per annum

VENCOREX France

  • TDI conversion to world-scale HDI monomer
  • Capacity: 70 KTA
  • CAPEX : 17 M.Euro
  • Target COD : 2Q/16

2015 2016

COD 2Q/16 End 1Q/16 S/D to tie in

Update:

  • Ordered long lead item

HDI Derivatives

HDI Monomer

TDI

Sustaining strong TDI customer base in Europe

  • Maximize special grade TDI (raffinate)
  • Application development i.e. TDI for Coating/ Adhesives/ Sealants/ Elastomers market
  • Target on direct customers while keeping good connection with worldwide traders

Continue R&D for TDI Process Improvement VENCOREX USA : Exploring the possibility of HDI derivatives expansion in the US 14

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SLIDE 15

Waste water Waste water Electrical, Steam Biomass Fertilizer Electrical, Steam

Bio Diesel Glycerine Plantation Cogeneration Palm Oil Crushing mill

Bioplastics Biochemicals Biofuels

Biogas Utility Utility and Waste System

Palm Oil Palm Kernel Methyl Ester Fatty Alcohol Plant Palm Oil Fatty Alcohols

Palm-Base B i o h u b C o n c e p t

GREEN: Bio-Hub Concept

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SLIDE 16

Cane Juice / Molasses Waste water Electrical, Steam Baggases Fertilizer Electrical, Steam

Bioplastics/ Biochemicals Biopower Plantation Cogeneration Crushing Mill

Bioplastics Biochemicals Biofuels

Utility Electrical Steam Utility & Waste

Biofuels

Sugar-Base B i o h u b C o n c e p t

GREEN: Bio-Hub Concept

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Agricultural Feedstock Fermentation (Lactic Acid) Monomer/Polymer (Lactide/PLA) Polymer (PLA) Application

  • Thailand Plant : Integration with Cargill’s Lactic Acid Technology will enable

NatureWorks to invest in second fully integrated PLA Plant located in Thailand, supporting Thai National BIO-HUB Policy 2nd PLA Plant in Thailand HLA Backward Integration

GREEN: NatureWorks

Local Feedstock

PLA Value Chain

  • US Plant : Lactic Acid contributes 50-70% of PLA cost, moving upstream to

integrate Lactic Acid supply will increase competitive position; driving PLA business in a sustainable model

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SLIDE 18

18

  • Overview
  • Strategic Actions Progress
  • Financial Performance
  • Market Outlook

AGENDA

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SLIDE 19

Changes in Accounting Standards - PACK 5

TFRS 10 & TFRS 11 : Material effect to PTTGC

TAS 27

% of share holding De facto Control

TFRS 10

Equity Method Consolidate

PTTGC is under control of PTT and need to be consolidated

TFRS 10 : Consolidated Financial Statements

TAS 31

Joint Venture Joint Venture

TFRS 11

Proportionate Consolidated

  • r

Equity Method Equity Method

TFRS 11 : Joint Arrangements

To use equity method for all joint venture entities

Impact of TFRS 10

Effect to PTTGC

  • All business combination

between the companies under PTT’s control need to realize at cost Previous Common Control Transaction

  • 2006 : BPE, PTTPE
  • 2011 : PTTCH + PTTAR
  • 2013 : GPSC

Effect to PTTGC

  • Joint Venture : to apply

equity method instead of previously used proportionate consolidation method Joint Venture Entities

  • TEX (50%)
  • Emery (50%)
  • ESC (50%)
  • NatureWorks (50%)

Effect to Statement of Income

  • Reduction in depreciation

expense (of PPA value) Effect to Statement of Financial Position

  • Reduction in total assets

(PPA & Goodwill)

  • Reduction in total equity

(deficit in equity) Effect to Statement of Income

  • Reduction in revenue and

expense

  • Increment in share of profit

from investments

  • No effect to the Company’s

net profit Effect to Statement of Financial Position

  • Reduction in total assets &

liabilities

  • Increment in investment in

joint ventures

Impact of TFRS 11 19

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Surplus crude pressured Dubai price to decline from average at 74.4 USD/BBL in 4Q/14 to 51.9 USD/BBL in 1Q/15. As a result, PTTGC reported Stock Loss & NRV totaling 1,133 M.THB in 1Q/15.

FX Gain amounting to 526 M.THB, resulting from slight appreciation in THB against USD from 33.11 THB/USD at the end of 4Q/14 to 32.70 THB/USD at the end of 1Q/15

Average and Ending Dubai Crude Price: USD/BBL Average and Closing FX : THB/USD

105.5 96.6

104.4 106.1 101.5 74.4 51.9 104.8 109.2 94.6 52.9 53.4 2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

Average Price Closing Price

30.73 32.48

32.66 32.45 32.10 32.71 32.65 32.58 32.60 32.52 33.11 32.70 2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

Average FX Closing FX

BUSINESS ENVIRONMENT AND OPERATIONS RECAP

1Q/15 QoQ YoY CDU Utilization Rate 102% 1% 1% Jet - Dubai

17.08

  • 4%

0%

Diesel - Dubai

16.29 2%

  • 8%

Fuel Oil - Dubai

  • 1.86

67% 78%

GRM on CDU ($/bbl) 7.97 27% 44% BTX Utilization Rate 89% 26%

  • 2%

PX- Condensate 333

  • 17%
  • 14%

BZ- Condensate 217

  • 32%
  • 43%

Market P2F ($/Ton) 219 34% 32% Olefins Utilization Rate 96%

  • 5%

18% Polyethylene Utilization Rate 107%

  • 3%

8% MEG Utilization Rate 108% 5% 44%

HDPE Price 1188

  • 18%
  • 24%

MEG Price 903

  • 13%
  • 24%

% Adj. EBITDA Margin 19%

  • 5%
  • 5%
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SLIDE 21

1Q/15 INCOME STATEMENT – CONSOLIDATED

***

1Q/14R** 4Q/14R** 1Q/15 YoY QoQ MB % MB % MB % MB % MB % Sales Revenue 141,455 100 121,085 100 99,251 100 (42,204)

  • 30%

(21,834)

  • 18%

Feedstock Cost (117,581) (83) (95,112) (79) (75,721) (76) (41,860)

  • 36%

(19,391)

  • 20%

Product to Feed Margin 23,874 17 25,973 21 23,530 24 (344)

  • 1%

(2,443)

  • 9%

1 Variable Cost (7,062) (5) (7,358) (6) (6,809) (7) (253)

  • 4%

(549)

  • 7%

2 Fixed Cost (4,075) (3) (4,039) (3) (3,514) (4) (561)

  • 14%

(525)

  • 13%

3 Stock Gain/(Loss) & NRV (567) (0) (13,676) (11) (1,133) (1) (566)

  • 100%

12,543 92% 4 Gain/(Loss) Commodity Hedging 184 1,229 1 (188) (0) (372)

  • 202%

(1,417) -115% 5 Other Income 990 1 1,421 1 926 1 (64)

  • 6%

(495)

  • 35%

6 SG&A (2,413) (2) (3,278) (3) (2,339) (2) (74)

  • 3%

(939)

  • 29%

EBITDA 10,931 8 272 10,473 11 (458)

  • 4%

10,201 3750% 7 Depreciation & Amortization (3,857) (3) (4,040) (3) (3,979) (4) 122 3% (61)

  • 2%

EBIT 7,074 5 (3,768) (3) 6,494 7 (580)

  • 8%

10,262 272% Finance Cost (1,176) (1) (1,117) (1) (1,076) (1) (100)

  • 9%

(41)

  • 4%

8 FX Gain/(Loss) 617 (451) (0) 526 1 (91)

  • 15%

977 217% 9 Shares of profit/(loss) from investments 36 (312) (0) 237 201 558% 549 176% 10 Income Tax Expense (402) (0) 923 1 (499) (1) 97 24% 1,422 154% Net Profit 6,149 4 (4,725) (4) 5,682 6 (467)

  • 8%

10,407 220% Profit/(loss) attributable to: Owners of the Company 6,320 4 (4,780) (4) 5,631 6 (689)

  • 11%

10,411 218% Non-controlling interests (171) (0) 55 51 222 130% (4)

  • 7%

Adjusted EBITDA * 11,498 8 13,948 12 11,606 12 108 1% (2,342)

  • 17%

Note: * Adjusted EBITDA refers to EBITDA excluding impact of inventory value (excludes Inventory gain/(loss) and NRV) ** Restated 1Q/2014 and 4Q/2014 Income Statements from the implementation of new accounting standards (Pack 5)

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SLIDE 22

OVERVIEW OF BUSINESS UNITS’ PERFORMANCE

49% 21% 22% 3% 6% Sales Revenue

1Q/15 Revenue and Adjusted EBITDA Structure

99,251 MB 11,606 MB

% Adjusted EBITDA Margin

(Unit: MB) 1Q/14R 4Q/14R 1Q/15 YoY % + /(-) QoQ % + /(-) Sales Revenue 141,455 121,085 99,251

  • 30%
  • 18%

EBITDA 10,931 272 10,473

  • 4%

3750% EBITDA Margin (%) 8% 0% 11% 3% 10% Net Profit 6,320 (4,780) 5,631

  • 11%

218% EPS (Baht/Share) 1.40 (1.06) 1.25

  • 11%

218% Adjusted EBITDA* 11,498 13,948 11,606 1%

  • 17%

Adjusted EBITDA Margin (%) 8% 12% 12% 4% 0%

Note: * Adjusted EBITDA refers to EBITDA excluding impact of inventory value (Inventory gain/(loss) and NRV)

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25% 16% 48% 1% 7% 3% Adjusted EBITDA 1Q/14R 4Q/14R 1Q/15 Business Unit : Refinery

3 6 6

Aromatics

3 1 13

Olefins and Derivative

24 25 19

Green

8 2 6

HVS

3 6 12

Average

8 12 12

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SLIDE 23

132.4 147.5 146.5 148.6 148.2 146.6 147.8 54.7 56.2 52.4 59.4 61.0 52.0 60.3

187.1 203.7 198.9 208.0 209.2 198.6 208.1

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

Crude Condenstate Residue & Others

REFINERY PERFORMANCE

1Q/15 GRM reached Historical High

13.7 14.3 14.6 16.1 13.2 13.4 15.3 2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 17.5 15.9 17.0 14.3 14.5 17.7 17.1 2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 17.9 16.1 17.8 16.0 14.4 16.0 16.3 2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 (8.1) (8.3) (8.5) (10.7) (8.4) (5.6) (1.9) 2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

8% 8% 5% 8% 9% 9% 9% 14% 14% 14% 13% 14% 14% 12% 51% 50% 52% 51% 54% 45% 46% 12% 13% 13% 13% 12% 15% 17% 14% 15% 16% 16% 10% 16% 16%

166 185 185 188 179 186 184

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 Naphtha + Ref. Jet Diesel Fuel Oil Others

ULG 95 - DB

JET - DB Diesel - DB FO - DB

Petroleum Products - Dubai Spread (USD/BBL)

+5% YoY +14% QoQ 0% YoY

  • 4% QoQ
  • 8% YoY

+2% QoQ +78% YoY +67% QoQ

Gross Refinery Margin (USD/BBL) Total Intake (KBD) Sales Volume (KBD)

CDU U-Rate

  • 1% YoY
  • 1% QoQ

+ 5% YoY

  • 9% YoY
  • 10% YoY

91% 102% 101% 103% 102% 101% 102%

+11% YoY +5% YoY +5% QoQ

  • 3% YoY
  • 9% YoY

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2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 Market GRM 3.52 4.41 4.48 4.44 3.83 4.91 5.98 GRM on CDU 4.37 5.61 5.52 5.74 4.81 6.30 7.97 GRM on CRS 2.87 2.77 2.85 2.76 2.82 2.57 2.58

3.52 4.41 4.48 4.44 3.83 4.91 5.98 0.84 (4.36) (0.69) 0.73 (2.92) (14.68) (1.50) 0.78 0.94 0.33 0.66 0.70 2.08 (0.31)

5.14 0.98 4.12 5.83 1.61 (7.69) 4.17

(15.00) (10.00) (5.00)
  • 5.00
(15.00) (10.00) (5.00)
  • 5.00

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

Market GRM Stock Gain/(Loss) Net NRV Hedging Gain/(Loss) Accounting GRM

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SLIDE 24

380 375 380 370 430 320 217

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

  • 1% YoY

557 400 386 334 479 401 333

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

  • 28% YoY

AROMATICS PERFORMANCE

Lower Breakeven Point from Low Crude Price

Prices

PX FECP - Cond

BZ Spot - Cond

Aromatics Products Prices and Spread (USD/Ton)

  • 14% YoY
  • 17% QoQ
  • 43% YoY
  • 32% QoQ

Products to Feed Margin (USD/Ton BTX) BTX U-Rate and Sales Volume (KTons)

BTX U-Rate

  • 12% YoY

+6% QoQ

90% 81% 91% 89% 82% 63% 89%

  • 6% YoY

922 836 917 922 872 634 453 1,479 1,236 1,303 1,256 1,350 1,035 785 1,301 1,211 1,297 1,293 1,301 954 670

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

Condensate Erawan PX FECP BZ Spot Korea

24

10% 11% 12% 12% 9% 11% 2% 28% 30% 25% 28% 33% 35% 28% 38% 36% 38% 37% 36% 33% 45% 23% 23% 24% 23% 22% 21% 25%

3,346 3,156 806 860 822 668 707

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 BZ Group PX Group Naphtha Group Other By- Products

296 174 166 86 290 164 219 17.47 (85.91) (7.90) 40.44 (68.54) (398.22) (27.63) (0.19) (0.08) (0.02) (0.37)

313 88 158 127 222 (235) 191

(400) (300) (200) (100)
  • 100
200 300 (400) (300) (200) (100)
  • 100
200 300

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

Market P2F Stock Gain/(Loss) Net NRV Hedging Gain/(Loss) Accounting P2F

Naphtha - Cond

25 18 29 42 13 41

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2013 2014 +131% YoY +229% QoQ +31568% YoY

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SLIDE 25

OLEFINS AND DERIVATIVES PERFORMANCE

Softer HDPE price led to lower adjusted EBITDA margin

25

Prices

MEG ACP – 0.65Ethylene HDPE - Naphtha

Olefins Derivatives Prices and Spread (USD/Ton)

  • 4% YoY
  • 4% QoQ

+12% YoY

  • 13% QoQ

Adjusted EBITDA Margin U-Rate (%) GAS : NAPHTHA Intake %

HDPE Price

  • 24% YoY
  • 18% QoQ

Sales Volume (KTons)

KTons

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 Olefins 90% 91% 77% 91% 94% 101% 96%

HDPE 106% 107% 93% 107% 114% 115% 109% LLDPE 103% 100% 99% 112% 84% 105% 110% LDPE 76% 105% 115% 93% 104% 106% 99%

Total PE 99% 105% 99% 106% 104% 111% 107% MEG 94% 95% 65% 99% 112% 104% 108% 2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 Olefins 756 708 134 168 182 224 196

HDPE 834 873 202 218 210 243 219 LLDPE 397 407 98 105 85 120 108 LDPE 218 323 72 92 75 83 80

Total PE 1,449 1,603 373 415 369 446 407 MEG 372 382 71 95 110 107 102

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 HDPE (FILM) SEA 1,488 1,544 1,554 1,569 1,604 1,448 1,188 LLDPE CFR SEA 1,487 1,543 1,560 1,578 1,601 1,431 1,181 LDPE CFR SE Asia 1,534 1,571 1,639 1,605 1,601 1,440 1,192 MEG ACP 1,202 1,113 1,182 1,093 1,143 1,035 903 Naphtha MOPJ 921 861 935 951 913 647 494

566 682 620 618 691 802 694

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 +21% YoY

323 206 245 152 182 246 236

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

  • 36% YoY

27% 26% 24% 25% 28% 25% 19%

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

25

56% 56% 60% 54% 55% 58% 56% 34% 35% 27% 35% 40% 36% 37% 10% 8% 13% 11% 4% 6% 7% 3,709 3,727 799 932 965 1,032 991

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

Ethane Other Gas Naphtha 1,488 1,544 1,554 1,569 1,604 1,448 1,188 1,487 1,543 1,560 1,578 1,601 1,431 1,181 1,534 1,571 1,639 1,605 1,601 1,440 1,192 1,202 1,113 1,182 1,093 1,143 1,035 903 921 861 935 951 913 647 494

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

HDPE (FILM) SEA LLDPE CFR SEA LDPE CFR SE Asia MEG ACP Naphtha MOPJ

slide-26
SLIDE 26

241 236 240 256 240 1,380 1,488 1,544 1,188 1,373 27% 27% 26% 19%

0% 5% 10% 15% 20% 25% 30%

  • 200

400 600 800 1,000 1,200 1,400 1,600 1,800

2012 2013 2014 1Q-15 QTD (10-May-15) Ethane Flow (Ton/Hr) EBITDA Margin (%) HDPE Price ($/Ton) 1Q/15 EBITDA Margin 19%

  • HDPE price @ 1,188 $/Ton decreased

23% from avg. 2014 price

  • Variable cost (mainly consist of utility

and chemical cost) per ton decreased 10% from avg. 2014 2Q/15 Expects EBITDA Margin to increase

  • HDPE price is expected to be in the

higher level than 2012

  • Ethane flow is expected to remain the

same level as 2012

Olefins and Derivatives

EBITDA Margin increase

26

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SLIDE 27

PHENOL AND BPA PERFORMANCE

Improved from Better Sales Volume and BPA Product Margin

Prices

BPA-Phenol Phenol-BZ

Phenol/ BPA Prices and Spread (USD/Ton) U-Rate and Sales Volume (KTons)

Sales Volume (KTons)

Adjusted EBITDA Margin

+55% YoY +6% QoQ +90% YoY

  • 15% QoQ

+112% YoY +26% QoQ

  • 7% YoY

1,301 1,211 1,297 1,293 1,301 954 670 1,416 1,427 1,424 1,456 1,592 1,235 909 1,708 1,695 1,638 1,653 1,894 1,595 1,364

600 800 1000 1200 1400 1600 1800 2000 2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

Benzene Phenol BPA

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 Phenol (CMP) 1,416 1,427 1,424 1,456 1,592 1,235 909 BPA (CMP) 1,708 1,695 1,638 1,653 1,894 1,595 1,364 Benzene 1,301 1,211 1,297 1,293 1,301 954 670

U-Rate 2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 Phenol 126% 118% 78% 131% 132% 132% 131% BPA 100% 99% 70% 107% 104% 116% 114% 54% 58% 60% 58% 52% 60% 59% 46% 42% 40% 42% 48% 40% 41% 277 258 48 66 73 70 74

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 Phenol BPA

4% 11% 4% 7% 16% 13% 19%

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

115 216 126 164 291 282 240

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 +88% YoY

292 268 214 197 302 360 454

2013 2014 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15

  • 8% YoY

27

slide-28
SLIDE 28

STRONG FINANCIAL POSITION

Maturity of Financial Debt* as at Mar. 31, 2015

Interest Rate Currencies 63 % Fixed 55 % THB 37 % Float 45 % USD & Others

Loan Type

  • Cost of long term debts ~ 4.59% (Include W/H Tax)
  • Average loan life after refinancing - 5.11Years

Treasury policy

Net IBD to Equity ratio of ≤ 0.7x Net IBD to EBITDA ratio of ≤ 2.4x

THB Bn

* After Refinance

Key Financial Ratios Statements of Financial Position

As of Dec. 31, 2014 As of Mar. 31, 2015

THB 385 Bn THB 380 Bn

Cash +ST Investment CA Non CA PPE Liab. IBD Share Holder’s Equity

6.2 9.9 15.7 10.7 8.9 12.7 10.8 34.6 0.7 0.7 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 PTTGC PPCL Others

1.30 1.40 1.47 1.97 1.59 0.29 0.31 0.30 0.30 0.23

31 Mar. 14 30 Jun. 14 30 Sep. 14 31 Dec. 14 31 Mar. 15 Net IBD/EBITDA NET IBD/Equity

12.14% 13.09% 12.16% 6.86% 6.40% 8.49% 9.01% 8.36% 5.05% 4.91%

31 Mar. 14 30 Jun. 14 30 Sep. 14 31 Dec. 14 31 Mar. 15 ROE ROA

28

slide-29
SLIDE 29

CAPEX TO SUPPORT GROWTH

193 226 251 252 228 242 251 175 32 38 24 325 280 262 47 36 19 36 58 66 6 1 26 39 7 738 614 616 389 263 248 251

545 387 365 138 36 6 1

2013A 2014A 2015 2016 2017 2018 2019 Green 1-step Core uplift Phenol Annual Maintenance Total Total Growth Project

Approved CAPEX Plan 2015 -2019*

Unit: USD mn

Uncommitted 5 Years Investment CAPEX

$1 Bn secured from USD Bond issued in Sep’12

Green 5% 64%

1-Step Adjacencies

31% Core Uplift

$ 4.5 Bn

$ 2.5 Bn Cash Flow From Operation $ 2 Bn Debt Financing

29

*FX = 30 THB/USD

slide-30
SLIDE 30

30

  • Overview
  • Strategic Actions Progress
  • Financial Performance
  • Market Outlook

AGENDA

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SLIDE 31

2015 Market Outlook Crude price in improve in short term with high volatility

– Crude demand/supply will be more balanced from growing demand during low oil price with slower U.S. crude output, however, record high of crude net long position – Expect Dubai crude to increase in 2H/15 to 64 $/bbl at the end of the year.

Aromatics margins slightly improve

– Paraxylene still in oversupply however, start up of new capacity maybe delayed. Chinese regulators are more stringent after Dragon Aromatics’ incident. – Benzene demand improved from low crude oil price, however, higher naphtha crackers

  • perating rate may increase benzene supply from additional pygas volume.

Polyethylene strong prices from firm demand

– Polyethylene market is quite balanced with more demand from emerging market

MEG margin recovers from polyester demand growth

– MEG market is more balanced from growing demand from polyester. Low inventory level of MEG in China.

CONCLUSION & MARKET OUTLOOK

31

slide-32
SLIDE 32

32 For further information & enquiries, please contact our Investor Relations Team at IR@pttgcgroup.com

Thank You

1 Thitipong Jurapornsiridee VP - Corporate Finance & IR Thitipong.j@pttgcgroup.com +662-265-8574 2 Puvadol Vasudhara IR Manager Puvadol.v@pttgcgroup.com +662-140-8712 3 Prang Chudasring IR Analyst Prang.c@pttgcgroup.com +662-265-8327 4 Supika Charudhanes IR Analyst Supika.c@pttgcgroup.com +662-265-8533 5 Chutima Jarikasem IR Coordinator Chitima.j@pttgcgroup.com +662-1408713